Finnair has confidence in finances despite volcano crisis

Thousands could be temporarily laid off if airport remains closed

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The Finnish airline Finnair is confident that it can manage economically in the wake of the airborne volcanic ash which has grounded most of its flights.
      “Among European companies, we have pretty good possibilities. We have dealt with our balance sheet, we have not become overly indebted, and the cash reserve situation is pretty good”, says Taneli Hassinen, Finnair’s director responsible for relations with investors.
     
“Naturally, these cash reserves are intended for completely different purposes - mainly for the acquisition of aircraft, but now they operate as a buffer.”
      If the eruptions of ash continue for a longer time, indebted companies with small cash reserves will be in the worst condition. Hassinen says that this mainly applies to low-cost airlines.
     
Finnair estimates the losses incurred from the grounding of its flights to be about EUR 2 million a day. The company informed its staff that it would suspend the payment of wages and salaries after 14 days if the situation is not changed.
      If this happens, the daily loss would be half of what it is now.
      Hassinen says that “several thousand” of Finnair’s staff of 8,000 would be effectively furloughed.


Links:
  Finnair info on arrangements during flight ban

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